Tungsten Project Hits Key Milestone with Release of Feasibility Study Results

January 29, 2013 -- Fredericton, New Brunswick -- Northcliff Resources Ltd. ("Northcliff" or the "Company") (TSX: NCF) is pleased to announce it has completed a Feasibility Study for the Sisson Tungsten-Molybdenum Project, located in central New Brunswick. The results of the independent study confirm that the Sisson Project is technically and economically feasible and can now move on to the next stage of the CAD $579 million development.

Northcliff Resources CEO Chris Zahovskis said, "The results of the Feasibility Study have confirmed the economic and technical viability of the Sisson Project. This is an exciting and important resource development project for New Brunswick and we believe it has the potential to become a catalyst for growth in the provincial economy. The Sisson Project will benefit New Brunswick citizens and communities by maximizing local opportunities at every stage of project development. Residents and businesses of communities in the project area and the province of New Brunswick are given priority consideration for employment and contracting. The project will also generate significant tax revenues which could help fund improvements to roads, health care and schools in New Brunswick."

The responsible development of the Sisson Project will require a total capital investment of some $579 million and generate 300 direct operations jobs during the 27 year life of the project and up to 500 jobs during the project's two year construction phase. The Feasibility Study also illustrates the significant annual tax revenues that the Sisson Project will generate. At base level assumptions, the Sisson Project will generate more than $525 million in direct provincial tax revenues in 2013 dollars over its 27-year operating life, more than half of which will be collected under the current Metallic Minerals Act mining tax regime. On average, the Sisson Project will generate $19.5 million annually provincial tax revenues. The project will further generate more than $367 million in direct federal taxes, an average of $13.6 million per year. Average annual operating expenditures of approximately $146 million include more than $20 million in payroll to employees.

The Feasibility Study outlines several key aspects of the Sisson Project:
  • Located 100 km by road northwest of Fredericton, NB, the Sisson Project will be developed as an efficient bulk tonnage operation with mine-site facilities to include: an open pit mine; ore processing plants; tailings storage facility; and ancillary buildings including offices, shops and warehouses.
  • $579 million capital investment to build the project which is estimated to have 27 year operating life. This investment will drive economic growth locally and provincially through the sourcing of local components where possible.
  • The Sisson Project will directly employ 300 people in New Brunswick during operations and up to 500 during the construction phase. The project workforce will be drawn from surrounding towns and cities whenever possible; no permanent work camp will be required.
  • In addition to industry-standard processing to produce tungsten and molybdenum concentrates, the Sisson Project will include a value-added processing plant to produce ammonium paratungstate (APT) from the tungsten concentrate. The APT plant will be the first of its kind in Canada, and will substantially enhance local employment and economic activity associated with the Sisson Project.
  • The Project will be constructed and operated to be environmentally sustainable manner and generate important socioeconomic benefits.
"Creating jobs in the resources sector in New Brunswick means skilled workers will be able to stay at home to work, instead of traveling for months each year to places such as Western Canada to work in similar-skilled positions. Recent statistics show unemployment for people under the age of 24 in New Brunswick has reached 20 per cent. That's a jump of 5 per cent in just one year. The Sisson Project, and others like it, can help stem the tide of youth leaving for jobs in other provinces," concluded Zahovskis.

Northcliff expects to submit an Environmental Impact Assessment ("EIA") report early in 2013. Project stakeholders in New Brunswick will have multiple opportunities to participate in the Environmental Impact Assessment and project review process through working groups, a government sponsored public meeting and during public comment periods associated with the EIA process when the EIA Report is released by the regulators. Environmental studies conducted to date have informed the Sisson Project design and the EIA will assess Northcliff's plans for constructing, operating and eventually closing the Sisson Project in an environmentally responsible manner.

Northcliff Resources Ltd. applies the principles of responsible mineral development, which involves early, ongoing and open engagement with First Nations and communities in the areas surrounding the Sisson Project.

For full details of the Feasibility Study results, please visit our website at www.northcliffresources.com.

For more information:
Greg Davidson
Community Relations Manager
Northcliff Resources Ltd.